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2017 (12) TMI 266 - AT - Central ExciseLiability of duty on intermediate goods - job-work - who is liable, job-worker or principal manufacturer? - Rule 4 (5) (a) and Rule 4 (6) of CCR - N/N. 214/86-CE dated 25.3.1986 - whether job-worker is exempt from duty on intermediate goods when principal manufacturer discharges such duty? Held that: - the fact remains is that neither the goods after jobwork were cleared as such on payment of duty nor were used in manufacture of dutiable final products by the Principal manufacturer. Hence the duty liability would be on the real manufacturer of goods i.e the Jobworker. Since the Principal manufacturer pays the duty on the product arising out of manufacture even at the jobworkers end, he is eligible to avail credit. The Rule 4 (5) (a) thus is a facility to the principal manufacture to send goods for jobwork on which cenvat has been availed. It is nothing to do with the duty payment of goods - Rule 4 (6) is a facility to the Principal manufacturer to clear the goods directly from the premises of jobworker after payment of duty. Notably it is not the case of the appellant that the Principal manufacturer paid duty at anytime as the goods manufactured by him were exempted from duty. Thus the liability for payment of duty on such intermediate goods manufactured by the Jobworker is on jobworker only. The Jobworker, M/s Thermax being manufacturer of excisable goods is liable to pay duty on the intermediate goods manufactured by him on jobwork basis which supplied to their principal M/s Thermax Babcock - appeal dismissed - decided against appellant.
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